Former Sacramento City Councilmember Sean Loloee is expected to enter a plea agreement in federal court Thursday.

SACRAMENTO, Calif. — Former Sacramento City Councilmember Sean Loloee is expected to enter a plea agreement in federal court Thursday.

Loloee was charged back in Dec. 2023 on 25 counts of federal crimes including wire fraud, using false immigration documents and conspiracy, among others. These stem from allegations that Loloee illegally employed undocumented workers at his four Viva Supermarket locations in the area, mistreated them and interfered when federal law enforcement tried to investigate.

Federal prosecutors added more charges in March 2024, alleging Loloee had defrauded the federal government out of $1.2 million in COVID-19 relief funds, through the Small Business Administration’s Restaurant Revitalization Fund (RRF). Prosecutors allege Loloee’s businesses were not eligible for this money but he received it by underreporting gross receipts on his RRF applications. Prosecutors further accuse Loloee of then laundering the money through a series of bank accounts.

Loloee has previously pleaded not guilty to all charges, but a document filed April 14 in federal court shows Loloee plans on changing his plea.

Court officials tell ABC10 a plea agreement will be filed following a hearing on Thursday.

Loloee’s attorney Tom Johnson said he can’t comment until Thursday.

Loloee was elected to Sacramento City Council’s District 2 seat in 2020 and served until early Jan. 2024, when he resigned following repeated calls from then-Mayor Darrell Steinberg and other councilmembers for him to step down.

Steinberg said he was motivated, in part, by the court listing Loloee’s primary residence as an address well outside Sacramento city limits, in an entirely different county. A Sacramento city councilmember must live in the district they represent.

Back in 2022, Loloee had faced questions over whether he lived within Sacramento city limits: doubts Loloee vehemently denied. However, shortly after the federal indictments came out in late 2023, a federal judge ordered Loloee to stay at his primary residence – a location in Granite Bay.

WATCH MORE ON ABC10 | Former Sacramento councilman Sean Loloee pleads not guilty to new money laundering charges

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